E-2 Partnerships: Ownership and Control Requirements
Some investors planning a venture in the United States often face an early choice: build alone or bring in a local partner. For those applying under the E-2 Treaty Investor visa, that decision carries legal weight. The rules allow partnerships with U.S. citizens, but only if the investor keeps the ownership and control required by immigration law.
The E-2 visa lets nationals of treaty countries live in the U.S. to develop and direct a business in which they have invested a substantial amount of capital. The U.S. Citizenship and Immigration Services (USCIS) states that this is proven through at least 50 percent ownership of the enterprise or operational control through a managerial or corporate position.
The U.S. Department of State’s Foreign Affairs Manual (9 FAM 402.9) explains that a qualifying company must hold the “nationality” of the treaty country. To meet that test, at least half of the business must be owned by nationals of the same treaty country as the investor.
This means U.S. partners are allowed, provided that treaty-country ownership remains 50 percent or higher. If U.S. citizens or non-treaty nationals own the majority, the business loses its treaty nationality and no longer qualifies for E-2 status.
Control matters as much as ownership percentage. The investor must show genuine authority to direct the business through voting rights, management power, or contractual control.
In simple terms, an E-2 investor may team up with American partners, but the treaty investor must stay in charge. Ownership and control determine eligibility, not the number of partners at the table.
Sources:
1. U.S. Citizenship and Immigration Services (USCIS). https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors
2. U.S. Department of State – Foreign Affairs Manual (FAM).https://fam.state.gov/FAM/09FAM/09FAM040209.html
3. U.S. Department of State. https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/fees/treaty.html